GFF vs TREX

For growth investors, Trex Company, Inc.

(TREX) is the stronger pick with 2. 0% revenue growth year-over-year, versus -3. 9% for Griffon Corporation (GFF). Trex Company, Inc. (TREX) offers the better valuation at 22. 6x trailing P/E (24. 2x forward), making it the more compelling value choice. Analysts rate Griffon Corporation (GFF) a "Buy" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Trex Company, Inc.

(TREX) is the cheapest at 22. 6x versus Griffon Corporation at 80. 8x. On forward P/E, Griffon Corporation is actually cheaper at 16. 8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Griffon Corporation wins at 0. 94x versus Trex Company, Inc. 's 7. 25x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Griffon Corporation (GFF) delivered a total return of +261.

0%, compared to -62. 7% for Trex Company, Inc. (TREX). Over 10 years, the gap is even starker: GFF returned +540. 7% versus TREX's +248. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Griffon Corporation (GFF) is the lower-risk stock at 1.

35β versus Trex Company, Inc. 's 1. 52β — meaning TREX is approximately 12% more volatile than GFF relative to the S&P 500. On balance sheet safety, Trex Company, Inc. (TREX) carries a lower debt/equity ratio of 22% versus 22% for Griffon Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Trex Company, Inc.

(TREX) is pulling ahead at 2. 0% versus -3. 9% for Griffon Corporation (GFF). On earnings-per-share growth, the picture is similar: Trex Company, Inc. grew EPS -14. 8% year-over-year, compared to -74. 2% for Griffon Corporation. Over a 3-year CAGR, TREX leads at 2. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Trex Company, Inc.

(TREX) is the more profitable company, earning 16. 2% net margin versus 2. 0% for Griffon Corporation — meaning it keeps 16. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TREX leads at 22. 0% versus 8. 2% for GFF. At the gross margin level — before operating expenses — GFF leads at 42. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Griffon Corporation (GFF) is the more undervalued stock at a PEG of 0. 94x versus Trex Company, Inc. 's 7. 25x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Griffon Corporation (GFF) trades at 16. 8x forward P/E versus 24. 2x for Trex Company, Inc. — 7. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GFF: 30. 7% to $115. 00.

In this comparison, GFF (1.

0% yield) pays a dividend. TREX does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Griffon Corporation (GFF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.

0% yield, +540. 7% 10Y return). Trex Company, Inc. (TREX) carries a higher beta of 1. 52 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (GFF: +540. 7%, TREX: +248. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

GFF pays a dividend while TREX does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.